The biggest investors in the Farm Management Deposits scheme in Victoria are dairy farmers, with $156 million invested as at September. Queensland beef farmers have the biggest total stored away of any farm sector, $222 million.

The accounts were introduced in 1999 to help farmers smooth the big income fluctuations that can occur from year to year. The scheme allows farmers to spread their farm profit over several years, ''to help reduce the overall tax burden and maximise profits'', the Department of Agriculture says.

Over recent years total investments and the number of accounts have climbed steadily. And with farmers now generally enjoying better conditions after years of drought, investments are likely to rise more.

In June this year farmers banked more than $600 million in a single month before the end of the financial year.

Victorian Farmers Federation president Peter Tuohey said the accounts were ''very helpful'' and allowed farmers to ''spread their risk a bit''.

■ Deputy Premier Peter Ryan chaired the first meeting of the Banksia Working Group on Monday. Receivers McGrathNicol said there was a prospect of a meaningful return to investors following the collapse of the rural lender, which put $660 million in savings at risk.